Understanding Entrepreneurship and Running a Small Business Venture

Demonstrate an
understanding of the running
of entrepreneurship and
running a small business
venture

Table of Contents
INTRODUCTION......................................................................................................................4
MAIN BODY.............................................................................................................................4
Business plan structure...............................................................................................................5
The opportunity..........................................................................................................................5
Opportunity.......................................................................................................................5
Market research ................................................................................................................5
The gap..............................................................................................................................6
Industry analysis...............................................................................................................6
Current competitive situation and PEST...........................................................................6
Projected strategic moves by current player.....................................................................7
Changes brought to the competitiveness of the industry by the new venture...................7
Innovations brought to the industry by the new venture...................................................8
Intellectual property/patents..............................................................................................8
Strategy.............................................................................................................................8
Ethics, responsibility, and sustainability ..........................................................................8
The company and team...............................................................................................................8
Legal structure .................................................................................................................9
Ownership ........................................................................................................................9
The advisory board ..........................................................................................................9
The management team......................................................................................................9
Expected contributions by each team ..............................................................................9
Expected salary ................................................................................................................9
Marketing...................................................................................................................................9
Identification of customers.............................................................................................10
Number of potential customers and potential sales revenues.........................................10
Requirements of various customer segments..................................................................10
Importance of purchase convenience, rapid delivery, product customization, etc for these
segments .........................................................................................................................10

Ways to effectively access each segment, distributors, a captive sales force, e-
commerce, etc.................................................................................................................11
Appropriate sales and promotion approaches.................................................................11
Analysis of how purchase decisions are made, and how/if this behaviour can be changed
and Customer price sensitivity .......................................................................................11
Cost of acquiring and retaining customers......................................................................11
Strengths and weaknesses of competitors and ways that competitors are likely to react
when the company enters the market..............................................................................12
Marketing Strategy and Marketing Tools.......................................................................12
Results from Market Research .......................................................................................12
Operating and Financial plans..................................................................................................12
Conversion of inputs into outputs that customer value...................................................12
Supplier relationships......................................................................................................12
Inventory required...........................................................................................................12
Manufacturing/service provision....................................................................................13
Financial plan..................................................................................................................13
Cost calculations ............................................................................................................13
Projected Break-Even Point ...........................................................................................13
Projected Cash flows ......................................................................................................13
Analysis of risk, present value, IRR, etc. .......................................................................13
Contingency plans ..........................................................................................................13
Triggers/thresholds to change courses ...........................................................................13
Conclusions and Balanced Scorecard ......................................................................................14
Balanced Scorecard ........................................................................................................14
Main conclusions from the project.................................................................................14
Limitations and future directions....................................................................................14
REFERENCES.........................................................................................................................15

INTRODUCTION
It is very important for an organisation to develop an effective and efficient business
plan in order to perform organisational functions in correct manner (Aarikka and Jaakkola,
2012). Business plan can be define as a well written document which consists of each and
every detail regarding business. For small size business or an entrepreneur it is essential that
it is developing product and services while consider needs and requirement of customers.
The chosen company for this report is The Comida store which is dealing in retail sector.
This is a small size venture which is providing natural food and drink products to customers
of UK market area. This report includes understanding about the development or running of
business. In this report a proper business plan is developed which consist of market research
as well as different methods of collecting methods. Target market is analysed for offering
products and services as well as enhancing sales of organisation. Apart from this different
opportunity for organisation in market area as well as analysis of competition in order to
perform better. This report will includes detail about the company as well as team member
for development of better business plan.
MAIN BODY
Business plan
Business plan can be describing as a well written document which includes
organisational goals and objective as well as other details about the organisation. This consist
of all the financial details as well as budgets in order to develop product and services. In
order to achieve desired aim respective company needs to develop an effective business plan
(Achtenhagen, Melin and Naldi, 2013). This will help in attracting more customers towards
organisation. this company needs to create a business plan for performing better as well as
improving productivity or profitability. This will include identification of market
requirements as well as conducting a proper market research in order to identify needs and
wants of customers.
Definition of product and service
This company is dealing is retail market sector as well as providing high quality food
products and services. It is very important for an organisation to offer product and services
which will be able to meet with the requirement of customers. this company is providing